Hangcha Group (603298) Research Briefing: Prospects for Domestic Forklift Leading Electric Forklift and AVG

Hangcha Group (603298) Research Briefing: Prospects for Domestic Forklift Leading Electric Forklift and AVG

Leading domestic forklift truck with solid performance 1) The company’s main products include forklift trucks, storage trucks, tractors, and unmanned industrial vehicles (AVG), etc. It is a leading domestic forklift truck company with extensive product manufacturing, logistics, transportation, storage and other industries.Achieved bulk exports to Europe and Southeast Asia.

2) The annual performance of the company has steadily improved. In the first half of 2019, the company achieved revenue / net profit of 46.

14/3.

48 ppm, an increase of ten years6.

28% / 10.

43%, gross / net margin is 20 respectively.

93% / 8.

45%, period expenses 11.

86%, including R & D expenses3.

81%, maintaining a good level.

3) In terms of solvency, H1’s asset and debt restructuring in 201932.

16%, current / quick / cash ratios are 2 respectively.

24/1.

76/1.

28. The company’s solvency.

Increased market share, promising development of electric forklifts and AVG 1) According to statistics 南京桑拿网 from the Industrial Vehicles Branch of the China Construction Machinery Association, the total sales volume (including exports) of the entire industry in the first half of 2019 was about 30.

660,000 units, a drop of about 0 a year.

31%, first of all, is due to the acceleration of global economic growth, the intensified trade friction between China and the United States, and the downward pressure on the domestic economy. The downstream demand is sluggish. In this case, the company’s sales volume increased in the first half of the year.

37%, the market share has further increased, and the industry continues to maintain its leading edge.

2) The company adheres to the development direction of high-end, electrification and intelligence. A number of high-end new products will be put on the market in 2019, which will help 苏州夜网论坛 improve the company’s product profitability level.

3) In terms of electrification, the new lithium battery dedicated forklift adopts the traditional electric forklift design method, integrating the advantages of internal combustion forklifts and electric forklifts, and far exceeds the traditional lead-acid battery in terms of performance, waterproof level, vision, and ergonomicsThe modified lithium battery model has promising development prospects.

4) In terms of intelligence, the company, China Telecom, and Zhejiang University jointly established the “5G Intelligent Control Innovation Lab” and launched the “Autonomous Vehicle Based on 5G Intelligent Storage Solution” AGV. There have been many practical application scenarios.The company’s forklift AGV product industry ranking has entered the forefront of the country, and the imagination space is broad.

5) Conversion of 50,000 investment electric vehicles and “Hangcha Intelligent Manufacturing Base” to 200,000 industrial vehicles. The company’s performance has been promoted and maintained steadily.

Earnings forecast, the first coverage is given an “overweight” rating. We believe that the company, as the leader of domestic forklifts, adheres to the development direction of high-end, electric and intelligent, and accelerates the development of electric forklifts and AGVs. The development prospects are worth looking forward to.

We expect the company to achieve operating income of 93 in 2019-21.

87/104.

16/114.

27 ppm, an increase of 11 years.

18% / 10.

97% / 9.

70%, achieving net profit attributable to mother 6.

24/7.

36/8.

24 ppm, an increase of 14 in ten years.

17% / 17.

92% / 12.

02%, corresponding EPS is 1.

01/1.19/1.

33 yuan / share, for the first time, give “overweight” rating.

  Risk warning: downward pressure on the macro economy increases; market demand exceeds expectations.